Corporate Finance

COURSE DESCRIPTION:

This course is an advanced undergraduate course in Finance, intended for finance majors. The objective of this course is to develop an understanding of the decisions financial managers face. In this course we will approach problems from the perspective of the CFO. We will focus on putting together and building on all skills acquired in previous courses, with focus on reporting and analysis, raising money and spending money. The course will also deal with transverse projects and final part we will talk about M&A and the market for corporate control and other advanced subjects from the perspective of working within a company.

 

COURSE OBJECTIVES:

- Corporate Finance, from a perspective of a company including the acquisition strategy.

- Make you familiar with the different financial tools used (ERP etc..) used to put in place a financial strategy,

- Prepare you to work in a finance function and analyse transverse projects

Presence in class is mandatory. Bring your book to class. More than 2 absences leads to a failing grade

 

EXPECTED LEARNING OUTCOMES:

After this course you will be able to:

1) Understand the function and tools of a financial manager

2) Explain key factors with investing and sources of finance and how firms issue securities

3) Risk management, understand hedging from corporate perspective

4) Acquisitions process, evaluation and constructing a model to evaluate the acquisition.

 

MANDATORY TEXTBOOK:

Fundamentals of Corporate Finance, 8th edition, (McGraw Hill International edition) by Brealey/Myers/Marcus. ISBN 978-981-4670-94-4

Additional course material (handouts, class exercises, special projects, tests and exams) will be handed out by the professor as required at every session. Students are expected to maintain a binder in which all course material will be filed and brought to every class.

CALCULATOR: You will be allowed to use any simple or financial calculator during exams.

 

EVALUATIONS:

There will be a mid-term exam and a final exam. In addition, you are required to read the textbook and do individual homework, as assigned in class. Your class participation grade will depend on the quality of this work and the quality of the questions you ask in class. Come to class prepared to answer questions when called on. You will also be required to make group presentations.

Participation based on oral and written and homework 20%

Quiz 20%

Midterm 25%

Final 35%

 

COURSE SCHEDULE:

1) Kick-off. Sustainable development and finance, revision, math, accounting and finance needed for course.

2) The organisation of a Finance department and CFO?s role. CFO priorities: Financial projections, performance and managing risk, treasury, cash flow and funding, strategy and acquisitions, business transformation and transverse functions.

 

Session 2

1) Chapter 3 and 4 review accounting and corporate performance.

2) Outside reading on ERP and closing the books (Consolidation and statutory), Summary of tools used to measure accounting and performance: ERP, consolidation and working with statutory accountants. The closing process, monthly, quarterly and yearly.

 

Session 3

1) Ch 12 Risk return and capital budgeting. Business controlling and financial planning and analysis

2) Tax Planning and impact of tax on corporate financing: cashflow planning for tax and effective annual rate.

 

Session 4

1) Transverse projects: 1) Review of systems used in finance: ERP, payroll, Business decisional and others

2) 2) Purchasing and finance 3) Legal and finance, case study on loan agreement, shareholder agreement and other. Other topics in insurance

 

Session 5

1) Commercial finance, working with sales department to build a proposal, case study with legal tender documents

2) Auditing within the corporate function, corporate treasury organisation, case study

 

Session 6

Midterm exam (2hours)

 

Session 7

1) Financial communication A case study on communicating quarterly results to investors and stakeholders.

2) Case study of financial communication in crisis.

 

Session 8

1) Ch 23 Options

2) Ch 24 risk management

 

Session 9

1) Ch 6 Bonds

2) Ch 7 Valuing stocks

 

Session 10

1) Ch 21Merger Acquisitions and corporate controls

2) Acquisition process, working with banks and sellers, negotiating an LOI and a SPA. Working with outside counsel (banks, audit, legal?)

 

Session 11

1) Due diligence and integration in acquisition

2) Leverage Buyout, Private equity and other specialised Acquisitions, Joint ventures and other greenfield projects.

 

Session 12 SATURDAY

Revision for final exam